S&P 500 Price Forecast – Stock Market Looks Ready to Bounce

US Stock Market Forecast Video for 20.10.23

S&P 500 Technical Analysis

The S&P 500 has initially fallen a bit during the trading session in early hours of overnight trading, but they look like they are ready to turn around and bounce during the trading session on Thursday. This makes a certain amount of sense as we are in the midst of earnings season, and that does tend to bring a lot of choppiness into the markets. Ultimately, the S&P 500 will continue to move right along with the latest narrative and therefore likely will continue to push the market back into this consolidation area.

That being said, if the market were to break down below the bottom of the candlestick for the trading session on Thursday, then it’s likely that we go much lower, perhaps reaching toward a 200-Day EMA. We recently bounced from the 50% Fibonacci level, and therefore I think a lot of the longer term traders are starting to look at it through the prism of perhaps trying to find some type of value.

Ultimately, the market is trading between the 50-Day EMA above, and the 200-Day EMA underneath. It typically means that we are in the midst of a lot of noise, but I would also point out that the market could be trying to form some type of rising wedge, which of course is a bearish pattern. Ultimately, I think we have a situation where it is likely that we will continue to bounce around, but there is still a bit of an overhang to the market, despite the fact that earnings have been decent so far.

With that being the case, you have to keep in mind that there are other things besides earnings going on, not the least of which of course is going to be the geopolitical problems, especially with a war kicking off in Gaza. Furthermore, there are a lot of concerns about inflation, and that works against a lot of stocks as well. When you look at this chart, it’s obvious that we have a lot of volatility, and therefore you are going to be very cautious with your position sizing as we continue to react to earnings.

For a look at all of today’s economic events, check out our economic calendar.